Students tend to approach the law of charitable trusts with a sense of relief. After the fairly dry and technical case law of private trusts, the eccentricities of numerous testamentary trusts created for charitable purposes provide some colour. Despite the colour provided by facts in cases, the law with respect to charitable trusts deserves deeper consideration. The charities and not-for-profit sector is now a major component on the Australian economy. Philanthropy and the effective control of charitable organisations raise important policy considerations. Regulation of charitable trusts is a problematic area, in part due to the Australian federal system. Potential charitable trusts are validated (or invalidated) according to the general law as administered by State Courts and local statute. Additionally, the Commonwealth regulates many financial aspects of the charities and not-for-profit sector. The focus of this chapter will be upon the establishment of trusts for valid charitable purposes, rather than their later regulation.

The restraints applicable on creation of a charity arise from perpetuities rules or from accumulation provisions that cause a failure to satisfy the common law or statutory definitions of charity. Perpetuities restraints are especially relevant to the matter of which generation gets to decide the intergenerational distribution of benefits and the chapter therefore outlines the perpetuities rules, including as amended or abolished by statute. Australian, Canadian, New Zealand, United States and United Kingdom examples are provided, with the examples set out in three broad categories: express statutory time limits on accumulation under charitable trusts along the line of the Thellusson Act, statutory rephrasing of common law accumulation rules and abolition of accumulation restraints. The chapter concludes by surveying separate rules to the perpetuities constraints that go to the validity of a charitable trust or incorporated charity and that can be affected by accumulation provisions. This discussion draws primarily on cases and legislation from Australia, the United Kingdom and New Zealand.

This chapter evaluates the operation of Midwest Special Needs Trust (MSNT), an organisation created to establish and administer special needs trusts. A special needs trust is used as a fiduciary tool to serve persons with disabilities so that their assets do not affect the eligibility of means-tested social benefits. It starts with an account of the history of MSNT, and then examines the specific definitions and requirements of MSNT trust accounts, the roles and responsibilities of the Trustee and co-trustees, and the merits of MSNT. This chapter also considers important aspects of the administration of MSNT, such as the establishment and termination of trust accounts, staffing, fees and expenses, data management, and investment policy. Real-life cases are discussed throughout to show how MSNT helps to improve the quality of life of the disabled. This chapter concludes with thoughts on the future development of special needs trusts, including MSNT service enhancements and other financial tools, to assist the population with disabilities.

This chapter evaluates the operation of Midwest Special Needs Trust (MSNT), an organisation created to establish and administer special needs trusts. A special needs trust is used as a fiduciary tool to serve persons with disabilities so that their assets do not affect the eligibility of means-tested social benefits. It starts with an account of the history of MSNT, and then examines the specific definitions and requirements of MSNT trust accounts, the roles and responsibilities of the Trustee and co-trustees, and the merits of MSNT. This chapter also considers important aspects of the administration of MSNT, such as the establishment and termination of trust accounts, staffing, fees and expenses, data management, and investment policy. Real-life cases are discussed throughout to show how MSNT helps to improve the quality of life of the disabled. This chapter concludes with thoughts on the future development of special needs trusts, including MSNT service enhancements and other financial tools, to assist the population with disabilities.